Sharma’s comments came a day after the Telecom Commission (TC) referred back to the Telecom Regulatory Authority of India (Trai), seeking further clarity on the amount of spectrum to be auctioned and the reserve price.Gulveen Aulakh | ET Bureau | Updated: March 29, 2016, 22:06 IST

NEW DELHI: Trai Chairman RS Sharma has questioned the telcos’ stand that 4G airwaves in the 700 Mhz band shouldn’t be auctioned now, saying these same carriers had pointed to spectrum scarcity as a major reason for poor quality of services.

“Initially some players were saying auction it, some were saying you shouldn't, these were the same people who said they can't provide quality service due to spectrum not being available... Paradoxical situation,” Sharma told reporters Tuesday on the sidelines of an industry event.

Sharma’s comments came a day after the Telecom Commission (TC) referred back to the Telecom Regulatory Authority of India (Trai), seeking further clarity on the amount of spectrum to be auctioned and the reserve price.

The commission sought the regulator's review of its suggestion to auction all spectrum available in the 700 Mhz band. A government official said that the telecom department wanted to auction airwaves in the 700 Mhz band at a time the industry can also use it to optimum and benefit. “We also want clarity on whether we should sell the airwaves in piecemeal instead."

Most telecom operators had opposed Trai’s suggestion to auction the band in the upcoming auctions, saying the industry wasn’t ready for it due mainly to an underdeveloped ecosystem. Telenor India was the only telco to back Trai's views of auctioning all available spectrum in the 700 Mhz band.

The industry had also panned the Trai suggested price of Rs11,485 a unit, saying it was too expensive. Bharti Airtel in fact called the price unaffordable.

TC, the highest decision making body in the telecom department, Monday also questioned Trai’s pricing formula for the 4G airwaves in the 700 Mhz band.

"The commission wanted to understand why has the regulator priced airwaves in the 700 Mhz at four times the 1800 Mhz," the official said. Previously the regulator used a set of four parameters including the ecosystem (device availability) and producer surplus in deciding the price of any band of spectrum for the first time.

Sharma Tuesday said that Trai’s pricing recommendations had detailed reasoning on why they were made and that various models were considered.

Still, Trai will respond to the TC’s reference as per rules. It needs to revert back with its clarifications in 15 days.

“This is not new, this is a process that happens - TC sends a reference back and we respond. We will take a call on this,” Sharma said.

On another topic, Sharma said that Trai will soon start working on a consultation process on interconnection charges for Internet protocol (IP)-based networks after the telecom department amends licenses, which is expected in a month.

The TC on Monday approved interconnection among IP networks. This “minor” amendment was required to enable interconnection among upcoming networks of telcos which will be based on IP starting with 4G technology.

Interconnection charges are paid by one telecom operator for transmitting calls of their caller made on a caller of another network.

Earlier networks were built using copper cables, called circuit switch, but modern networks are being built mostly using optical fiber.

Telecom licence has provision of connecting circuit switch-based networks with another circuit-switch, circuit switch with IP but not IP to IP.

DoT is expected to make amendments within a month to incorporate new provision.

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